This section details the major details that we believe may become risks factors with respect to investment in the Units or investment corporation bonds issued by the Investment Corporation (“Bonds”). The following is not an exhaustive list and there are risks other than those described below.

The Investment Corporation endeavors as much as possible to avoid these risks and to handle the risks if they eventuate; however, no assurances can be given that this avoidance and handling is ultimately sufficient. If any of the risks described below arise, the market value of the Units or the Bonds declines or the amount of distribution decreases, potentially resulting in losses for the investors.）

Investors are advised to make investment decisions concerning the Units and Bonds at their own risk after having carefully considering the matters written in this paragraph, as well as matters written in other paragraphs of this material.

Risks Regarding Products Features of Units and Bonds

• (A)Risk Regarding Market Price Fluctuations for Units and Bonds
• (B)Risk Regarding Market Transactions for Units
• (C)Distribution Risk
• (D)Risk Regarding Fluctuation in Revenue and Expenditure
• (E)Risk Regarding Dilution in case of the Issuance of New Units
• (F)Risk Regarding the Treatment of Investment Corporations Pursuant to Laws, Tax Systems, and Other Systems.

Risks Regarding Investment Corporation’s Investment Policy

• (A)Risk Regarding the Limit on the Type of Use of Investment Properties
• (B)Risk of Not Receiving Support Pursuant to the Business Partnership Agreement as Expected
• (C)Risk Regarding Property Management Companies, etc.
• (D)Risk Investment Corporation Cannot Acquire or Dispose of Real Estate
• (E)Risk Regarding Issue of new unit, Financing Through Borrowing and Investment Corporation Bonds

Risks Regarding Investment Corporation’s Related Persons and Structure

• (A)Risk Regarding Dependency on the Master Group and Conflicts of Interest
• (B)Risk Regarding Dependency on Investment Corporation’s Related Persons and Conflicts of Interest
• (C)Risk of Investment Corporation Depending on Investment Corporation’s Directors and Asset Manager’s Personnel
• (D)Risks Arising from No Legal Prohibitive Regulations Regarding Insider Trading Restrictions
• (E)Risk Investment Corporation Goes Bankrupt or Registration Be Cancelled
• (F)Risk Regarding Security Deposit and Guarantee Deposit

Legal Risks Regarding Real Estate and Trust Beneficial Interests

• (A)Risk Regarding Faults or Defects
• (B)Risk Regarding Lease Agreement
• (C)Risk Regarding Disproportionate Geographical Spread of Real Estate
• (D)Risk Regarding Tenant Concentration
• (E)Risk of Damaged, Destroyed or Deteriorated Building due to Natural Disaster
• (F)Risk Regarding Owner Responsibility and Repair and Maintenance Costs for Real Estate
• (G)Risk Regarding Administrative Regulations and Prefectural or Municipal Ordinances for Real Estate
• (H)Risk Regarding the Enactment or Amendment of Laws and Regulations
• (I)Risk Arising from Seller’s Insolvency
• (J)Risk Regarding Sublease
• (K)Risk Concerning Master Lease Contract
• (L)Risk Regarding Status of Use of Real Estate by Tenants
• (M)Risk Regarding Unit-Owned Buildings
• (N)Risk Regarding Co-owned Property
• (O)Risk Regarding Property on Leased Land
• (P)Risk Regarding Leased Houses
• (R)Risk Regarding Property Under Development
• (S)Risk Regarding Harmful Materials
• (T)Risk Specific to Real Estate Owned as Beneficial Interests
• (G)Risk Regarding Forward Commitment, etc.
• (U)Risk Regarding Rent Guarantee Companies

Taxation Risks

• (A)General Risk Regarding Maintenance of Conduit Requirements
• (B)Risk Regarding Application of Accounting for Impairment of Assets
• (C)Risk of Additional Tax Burden and Risk Distribution Requirement Not Satisfied Retrospectively Due to Retrospective Tax Adjustment Following Tax Audit
• (D)Risk of Reduced-Tax System for Acquisition of Real Estate Not Applying
• (E)Risk Regarding General Amendments to Taxation System)

Miscellaneous Risks

• (A)Risk of Relying on Professional Opinions
• (B)Risk that past balance of payments does not match the future balance of payments of the Investment Corporation